Rafizi: Govt forced to choose between upgrading airports or hospitals

SG BAKAP BY-ELECTION | Economy Minister Rafizi Ramli has revealed that the government was forced to make difficult choices between upgrading airports or funding essential services such as schools and hospitals.

He said maintaining a school costs RM40 to RM50 million a year, while a hospital costs RM500 million, and if RM2 to RM3 billion were set aside for airport upgrades in a year, school and hospital budgets would have to be cut.

“If we upgrade one airport or build a new one for RM2 billion, it means I have to cut four hospitals,” Rafizi (above) told the audience during a Pakatan Harapan rally in Sungai Bakap, Penang, last night.

The minister highlighted the longstanding issue of airport management in Malaysia, pointing out the difference between the country’s model and that of other nations.

Citing Singapore’s Changi Airport, where the operator is responsible for both daily operations and upgrades, Rafizi said Malaysia Airports Holdings Berhad (MAHB) has historically only managed operations, leaving the government to fund expansions and upgrades.

“Every year, I have to consider requests for new airports or upgrades. A typical upgrade costs RM3 billion, RM2 billion, or even RM700 million for smaller airports.

“Where do we get this money from? Who’s going to pay for it?” he said.

The minister’s comments came amid the proposed sale of a portion of MAHB stakes through a consortium which is aimed at improving the country’s capability to upgrade and construct airports without solely relying on government funds.

However, the opposition is fiercely against the government’s decision.

The controversy erupted on May 15, when Khazanah Nasional Berhad announced that it is leading a consortium that includes the Employees Provident Fund (EPF), Global Infrastructure Partners (GIP), and the Abu Dhabi Investment Authority (Adia) to take over MAHB shares not already owned by Khazanah or the EPF.

The decision courted flak from various quarters after it was found that Blackrock, a company deemed to have ties with Israel, is acquiring GIP.

Govt not taking IMF loan

Separately, Rafizi firmly addressed the opposition’s concerns regarding a potential International Monetary Fund (IMF) loan by the government, emphasising that such financial assistance is only sought by countries facing imminent economic collapse.

“The IMF is a last-resort financial institution. You approach the IMF for a loan only after exhausting all other options and being unable to repay existing debts,” he said.

The minister went on to explain the strict conditions under which countries that seek IMF assistance must adhere and that such loans are not casually available and are considered only for nations facing severe financial distress.

“Are we on the verge of bankruptcy? Are we unable to settle our loan?” he asked.

The PKR deputy president criticised the opposition for their lack of understanding of financial policies, sarcastically saying that they should have paid attention in school rather than spending time on TikTok.

These comments were in response to Perikatan Nasional chairperson Muhyiddin Yassin’s recent speculation about a potential link between the government’s subsidy reduction and future IMF borrowing.

Muhyiddin raised the matter during a PN rally and said: “I’m not accusing; I’m merely asking. Try to answer this. I want to know the answer.”

The exchange comes amid the ongoing Sungai Bakap by-election campaign, where Harapan candidate Joohari Ariffin faces Perikatan Nasional’s Abidin Ismail.

Polling day is on July 6.

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